Mercari, Inc.
Mercari, Inc. Fundamental Analysis
Mercari, Inc. (MRCIF) shows moderate financial fundamentals with a PE ratio of 13.77, profit margin of 14.30%, and ROE of 29.30%. The company generates $205.6B in annual revenue with weak year-over-year growth of 2.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -150.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MRCIF's fundamental strength across five key dimensions:
Efficiency Score
WeakMRCIF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRCIF trades at attractive valuation levels.
Growth Score
ModerateMRCIF shows steady but slowing expansion.
Financial Health Score
ModerateMRCIF shows balanced financial health with some risks.
Profitability Score
WeakMRCIF struggles to sustain strong margins.
Key Financial Metrics
Is MRCIF Expensive or Cheap?
P/E Ratio
MRCIF trades at 13.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MRCIF's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Mercari, Inc. at 3.65 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 8.28 times EBITDA. This is generally considered low.
How Well Does MRCIF Make Money?
Net Profit Margin
For every $100 in sales, Mercari, Inc. keeps $14.30 as profit after all expenses.
Operating Margin
Core operations generate 18.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.30 in profit for every $100 of shareholder equity.
ROA
Mercari, Inc. generates $4.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mercari, Inc. generates limited operating cash flow of $-20.01B, signaling weaker underlying cash strength.
Free Cash Flow
Mercari, Inc. generates weak or negative free cash flow of $-20.90B, restricting financial flexibility.
FCF Per Share
Each share generates $-126.77 in free cash annually.
FCF Yield
MRCIF converts -5.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.97
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How MRCIF Stacks Against Its Sector Peers
| Metric | MRCIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.77 | 24.85 | Better (Cheaper) |
| ROE | 29.30% | 1165.00% | Weak |
| Net Margin | 14.30% | 749.00% | Weak |
| Debt/Equity | 2.17 | 0.76 | Weak (High Leverage) |
| Current Ratio | 1.30 | 9.23 | Neutral |
| ROA | 4.77% | 1271.00% | Weak |
MRCIF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mercari, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
136.90%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
207.57%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-189.43%
Industry Style: Cyclical, Growth, Discretionary
Declining